If I am meeting all requirements and claiming 3 children, why am I not receiving the child tax credit in the fullest amount?

[sameyjo65233]

I was self employed through door dash. I made more than the required amount.

[xmasbaby0]

Making "more than the required amount" of $2500 does not mean you get the full amount of the additional child tax credit.  

  The maximum amount of the child tax credit is now $2000 per child; the refundable “additional child tax credit” amount is $1700.   In order to get that credit, you have to have income from working.  The credit is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1700 per child. If the amount you earned was too low, you will not get the full $1700.

 If your child is older than 16 at the end of 2024, you do not get the CTC.  But you may still get the non-refundable $500 credit for other dependents instead.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/child-tax-credit/L2lNhfGDl_US_e...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/additional-child-tax-credit/L6x...

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-f...

And for the Earned Income Credit—-

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/qualifications-ea...

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

Look at your 2024 Form 1040 to see the child-related credits you received

PREVIEW 1040

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/preview-turbotax-online-retur...

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

[Hal_Al · Accepted solution]

 There are 7 possible reasons; you aren’t getting the Child Tax credit (CTC). It’s usually #4:

1. You’ve entered something wrong. In the personal Info section, for the dependent, you must select answers that indicate that he/she is your dependent child. If the child was born during the year, say he/she lived with you all year (note: TurboTax changed how this section is done two years ago, you may need to go thru the interview again or even delete your dependent and start over). If the child was with you for 6 months and 1 day, you need to mark that the child was with you 7 months. The CTC is not an automatic $2000, per child. It is income dependent. If you haven't entered your income yet, the CTC will not show.
2. Your child may be  too old (over 16). You can still claim your child, as a dependent. What you can't claim is the Child tax credit. This comes as a big surprise to many parents the year their child turns 17. A child over age 16 no longer qualifies for the Child Tax credit (CTC). Although a child can still be a student dependent through age 23, and a qualifying child for EIC,  the Child Tax Credit expires the year they turn 17 and you no longer get the $2000 CTC. Instead you will get the non-refundable (up to) $500 Other Dependent Credit.
3. Your income is too high. The Child Tax Credit (CTC) is phased out at higher incomes starting at $400,000 for joint filers  ($200K single). You lose $50 for each $1000 (rounding up) your income is over that threshold.   Previously it was $75,000 for single, head of household, and qualifying widow or widower filers; and $110,000 for joint filers.
4. Your income is too low.  The child tax credit  (CTC) is limited to your tax liability. The CTC is a non-refundable credit and can only reduce your income tax to 0, It can not help you beyond eliminating your tax liability. But, if you have more than $2500 of earned income, some or all of it is usually given back to you thru the "Additional Child tax credit". That is, part of the CTC may be on line 28 of form 1040 (2021- 2024) instead of line 19. The  ACTC is calculated on form 8812 and  is basically 15% of your earned income over $2500. The ACTC is a maximum of $1700 (2024) ($1600 for 2023, $1500 for 2022) per child, not $2000.
5. You are the custodial parent and the non-custodial parent is claiming the dependent this year. The CTC goes with the dependency, even though the custodial parent still gets the Earned Income Credit, Dependent care credit and Head of Household.
6. Another possibility is that part of your tax due is not regular income tax, but is self-employment tax (FICA), early distribution penalty or another type of additional tax, for which the CTC cannot be used.
7. During covid (2021), the child tax credit was expanded and easier to get. That was temporary and those relaxed benefit rules are no longer available.